A new report from the UCLA Anderson Forecast wildfire report suggests that the two largest wildfires that recently ravaged L.A. County — the Palisades and Eaton fires — may have caused total property and capital losses ranging between $95 and $164 billion, with insured losses estimated at $75 billion.
The report, authored by economists Zhiyun Li and William Yu, predicts a 0.48% loss in county-level GDP for 2025, amounting to approximately $4.6 billion.
The economists summarized the estimated economic impacts, acknowledging that their estimates are based on various assumptions and may be subject to future revision.
Additional highlights from the report findings:
Local businesses and employees in the affected areas could face a total wage loss of $297 million.
Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution.
Los Angeles housing markets, and rental units in particular, will become increasingly unaffordable.
All wildfire mitigation investments will be justified, considering the astronomical costs associated with wildfires.
UCLA: L.A. wildfires caused as much as $164 billion in total property and capital losses
A new report from the UCLA Anderson Forecast suggests that the two largest wildfires that recently ravaged L.A. County — the Palisades and Eaton fires — may have caused total property and capital losses ranging between $95 and $164 billion, with insured losses estimated at $75 billion.
The report, authored by economists Zhiyun Li and William Yu, predicts a 0.48% loss in county-level GDP for 2025, amounting to approximately $4.6 billion.
The economists summarized the estimated economic impacts, acknowledging that their estimates are based on various assumptions and may be subject to future revision.
Additional highlights from the report findings:
Local businesses and employees in the affected areas could face a total wage loss of $297 million.
Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution.
Los Angeles housing markets, and rental units in particular, will become increasingly unaffordable.
All wildfire mitigation investments will be justified, considering the astronomical costs associated with wildfires.
Los Angeles is Burning, and Accelerating Hydroclimate Whiplash is the Key Climate Connection
